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Annual Conference

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Economic Transformation of Asia

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May 2019

Government Credit and Trade War

Hong RU, Endong YANG, Yong LIU, Jinlu FENG, Ning CAI
By merging transaction-level trade data from China Customs and loan data from the China Development Bank (CDB), we analyze the effects of government credit on trade activities. We find that CDB credit mainly flows to SOEs in strategic industries at the top of the supply chain. These up-stream loans ...
Keywords: government credit, Export, supply chain, trade war
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